Mick McCARTHY is set to be rewarded with a bumper pay rise at Wolves after snubbing South Korea and the Republic of Ireland.

Wolves boss McCarthy, 48, met Molineux owner Steve Morgan and chief executive Jez Moxey after it emerged South Korea fancied him as their new head coach.

And McCarthy was also on the shortlist for the Ireland job - despite a previous six-year reign from 1996 which ended when he fell out with Roy Keane before resigning.

But Wanderers are keen to retain the Yorkshireman after his sterling work on a tight budget, revitalising the Championship club following his arrival in July 2006 as Glenn Hoddle's successor.

Wanderers handed him a modest 12-month rolling contract and are set to improve those terms.

"I love it here and, having spoken to Steve, I made it clear I'm staying," said McCarthy, who was in the frame with Gerard Houllier for the Korean job. "I was very flattered to be contacted and considered a candidate alongside someone of the calibre of Gerard Houllier.

"But I have always been committed to the job at Wolves."

Moxey said: "When you have such a high quality manager, there is always the chance someone else will be interested in signing him, but we are pleased to confirm it's business as usual at Molineux."